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Mortgage Insurance Calculator

Compare mortgage insurance for the four most common loan types: conventional PMI, FHA MIP (upfront + monthly), USDA guarantee fee, and the VA funding fee.

Loan basics

$
$
%

Typical: 0.30–1.50% based on LTV and credit.

Monthly mortgage insurance

$155

PMI (private mortgage insurance)

Annual MI cost

$1,860

Upfront premium / fee

$0

typically financed into the loan

Effective LTV

93.0%

7.0% down

How the math works

Required while LTV exceeds 80%. Cancellable at 78–80% LTV based on original or current value.

Total financed loan after upfront fee: $372,000. The annual MI rate of 0.50% is applied to the financed balance and divided by 12 to get the monthly premium.

How to Use

  1. Pick the loan type you're shopping or comparing.
  2. Enter the property price and down payment — the calculator derives LTV and down payment percent.
  3. For conventional, enter the PMI annual rate your lender quoted (or use 0.50% as a starting point).
  4. Compare monthly cost, annual cost, and upfront premium across loan types to see the true difference.
  5. Note that FHA MIP and USDA guarantee fee usually run for the life of the loan; conventional PMI cancels at 78–80% LTV.

Frequently Asked Questions

How does PMI differ from FHA MIP?

Conventional PMI is private insurance that comes off when LTV reaches 78–80%. FHA MIP is the FHA's own insurance — it requires a 1.75% upfront premium and an annual premium that runs for the life of the loan when down payment is under 10%.

Does VA require monthly mortgage insurance?

No. VA loans charge a one-time funding fee (typically 1.25–3.3% based on down payment, service category, and prior use) but no monthly MI. The funding fee can usually be financed into the loan.

When does PMI come off automatically?

Federal law requires conventional PMI to terminate automatically at 78% LTV based on the original amortization schedule. You can also request cancellation at 80% based on original or current value, subject to lender rules.

Is mortgage insurance tax deductible?

Mortgage insurance premium deductibility has changed multiple times in recent years. For tax year decisions, confirm the current rule with a CPA. The MI cost itself is the same either way — deductibility just changes after-tax cost.

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